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Sep 30, 2021

Ameresco Q3 2021 Earnings Report

Reported strong third quarter results driven by a diversified business model and favorable business mix.

Key Takeaways

Ameresco reported a decrease in revenue to $273.7 million, but an increase in net income to $17.4 million, and Non-GAAP EPS of $0.41. The company's awarded backlog increased 11% sequentially and 31% compared to last year. They also announced a transformational contract to provide a 537.5 MW / 2.150 GWh multisite battery energy storage system for Southern California Edison (SCE).

Revenues of $273.7 million.

Net income of $17.4 million and GAAP EPS of $0.33.

Non-GAAP net income of $21.9 million, up 18% year-over-year.

Awarded backlog at the end of the third quarter increased 11% sequentially and 31% compared to last year.

Total Revenue
$274M
Previous year: $283M
-3.1%
EPS
$0.41
Previous year: $0.38
+7.9%
Total Project Backlog
$2.36B
Gross Profit
$58.8M
Previous year: $51.4M
+14.5%
Cash and Equivalents
$57.1M
Previous year: $45.4M
+25.9%
Free Cash Flow
-$20.5M
Previous year: -$10.8M
+89.8%
Total Assets
$1.97B
Previous year: $1.58B
+24.2%

Ameresco

Ameresco

Ameresco Revenue by Segment

Forward Guidance

Ameresco raised its FY 2021 Guidance Ranges, reflecting strong year-to-date performance, the recently announced BESS contract, and a lower than expected tax rate. The company anticipates commissioning approximately 30 MW of additional energy assets and plans to invest approximately $70 million to $120 million in additional energy asset capital expenditures during the remainder of 2021.

Positive Outlook

  • Revenue between $1.19 billion and $1.24 billion.
  • Gross Margin between 19.0% and 19.5%.
  • Adjusted EBITDA between $145 million and $155 million.
  • Interest Expense & Other between $20 million and $21 million.
  • Non-GAAP EPS between $1.39 and $1.47.

Challenges Ahead

  • Effective Tax Rate between 2% and 7%.
  • COVID-19 and supply chain challenges are anticipated to continue into 2022.
  • Increased investment in people, new resources and growth strategies.
  • Commissioning approximately 30 MW of additional energy assets.
  • Investing approximately $70 million to $120 million in additional energy asset capital expenditures during the remainder of 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income